HUD ANNOUNCES NEARLY $6 MILLION TO CREATE HOUSING FOR VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN MAINE
Funding part of $643 million awarded nationwide

It will soon be easier for senior citizens and people with disabilities to find affordable housing, thanks to nearly $6 million in housing assistance grants announced today by the U.S. Department of Housing and Urban Development.

"This Administration is committed to making sure our senior citizens and people with disabilities have opportunities
to find decent housing that they can afford," said Taylor Caswell, HUD Regional Director. "Neither group should ever have to worry about being able to find a safe place to live."

Volunteers of America Northern New England is being awarded $5.1 million under HUD's Section 202 program to
create 36 units of housing in Bangor for low-income elderly.

HUD's Section 202 program helps expand the supply of affordable housing with supportive services for the elderly.
It provides very low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, and transportation.

In addition to funding the construction and rehabilitation of projects to create apartments, HUD Section 202 grants will subsidize rents for three years so that residents will pay only 30 percent of their adjusted incomes as rent.

To be eligible for the assistance a household must be classified as "very low-income," which means an income less than 50 percent of the area median. In Bangor, the area median income is $53,400.

"Volunteers of America Northern New England has had an excellent track record in administering HUD funding to provide housing for very low-income seniors in Maine and New Hampshire," said Caswell.

John F. Murphy Homes, Inc., is being awarded $818,500 under HUD's Section 811 program to create six units of housing in Lewiston for low-income people with disabilities.

The Section 811 program allows persons with disabilities to live independently in their communities by increasing the supply of rental housing with the availability of supportive services. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

The funding creates housing for households with one or more very low-income individuals, at least one of whom is
at least 18 years old and has a disability, such as a physical or developmental disability or chronic mental illness.

To be classified as "very low-income," a household income cannot exceed 50 percent of the area median income.
In Lewiston, the area median income is $53,200.

"John F. Murphy Homes, Inc., has a long history of providing housing services to individuals with disabilities in the Lewiston/Auburn area," said Caswell.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities;
creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the
Internet and espanol.hud.gov.

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NOTE: For more information on a specific project, please contact the grantee. For information on HUD's Section 811 programs, or other HUD services and programs, please contact Kristine Foye at (617) 994-8218.